It was off to the races for natural gas futures prices Monday as a bump in production did little to assuage growing concerns about supply later this year, especially in light of the latest weather data. With chilly weather seen boosting demand for most of this month, the May Nymex futures contract exploded 36.5 cents higher to $6.643/MMBtu. June futures settled at $6.723, up 36.7cents.

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At A Glance:

  • Production falls to 97 Bcf/d
  • Forecasts for mixed demand
  • NGI models draw of 41 Bcf

Spot gas prices also strengthened, with hefty increases on the West Coast. NGI’s Spot Gas National Avg. jumped 21.0 cents to $6.205.

Amid increasing worries that gas producers had yet to respond to higher prices, output finally took a notable step higher on Monday. Bloomberg estimates showed...